Nigeria’s external reserves pool rose by $2.278 billion or 8.81% in January, closing at $28.121 billion on January 30, 2017, according to latest data available on the website of the Central Bank of Nigeria (CBN) on Tuesday evening.
The reserves opened the year 2017 at $25.843 billion and has continued to rise steadily ever since.
January’s rise brought the three-month rise in the reserves since October 30, 2016, when it closed at $23.949 billion to $4.172 billion or 17.42%.
However, on a year-on-year basis, the current level of external reserves is just $0.04 billion or 0.14% away from its $28.161 billion on January 29, 2016.
In a statement to defend its current management of the monetary framework, the CBN, last weekend, lamented the activities of some unpatriotic Nigerians working hard to ensure a reversal in the current forex policy, which it said “is aimed at conserving foreign exchange, stimulating agriculture and manufacturing and also promoting exports.
“The present economic challenges that we face have been worsened by our past practice of frittering away huge earnings made from oil sales, over the years,” stressing that its decision on FOREX management have been prompted by the challenge posed by the level of depletion of the country’s reserves, arising from issues such as a drastic reduction in oil earnings, speculative attacks and round tripping.
“It is pertinent to note that pressures on the country’s foreign reserves have persisted due to a huge fall in the monthly foreign earnings, which fell from over US $3.2 billion sometime in 2013 to below $500 million per month sometime in 2016, when the demand for the US dollar, particularly by importers, continued to rise considerably.”
Acting Director of Corporate Communications at the CBN, Isaac Okoroafor said that “in spite of the challenges and the basic economic fact that countries earn dollars from international trade, we have ensured we meet the genuine demand of importers to pay for eligible imports and other transactions within available resources.
Furthermore, the Bank has continued to ensure that there is liquidity and transparency in the FOREX market.”
The CBN lamented that “despite our positive efforts, some persons and groups have chosen to play to the gallery by focusing on negativity that does the country no good,” but assured nonetheless and in line with its “mandate and working with the fiscal authorities, we will continue to ensure monetary and price stability as well as maintain external reserves to safeguard the international value of the Naira.
“We therefore urge all concerned to be more patriotic and contribute to the soundness of the Nigerian economy; rather than engage in acts capable of undermining the efforts being made at moving the country out of the current economic situation,” he stressed.